India’s Consumer Price Index (CPI) inflation for April 2025, announced on May 12, 2025, recorded a year-on-year rate of 3.16%, the lowest since July 2019. This marks a decline of 18 basis points from March 2025’s rate of 3.34%, driven primarily by significant reductions in food inflation and specific commodity prices.
Food Inflation Trends
Sharp Decline in Food Prices
The Consumer Food Price Index (CFPI) inflation for April 2025 stood at 1.78%, a sharp drop of 91 basis points from 2.69% in March 2025. This is the lowest food inflation since October 2021. Rural areas reported a CFPI inflation rate of 1.85%, while urban areas saw 1.64%. Key contributors to this decline include reduced prices of vegetables, pulses, fruits, meat and fish, and cereals.
Rural and Urban Inflation
Regional Variations
In rural areas, headline inflation decreased from 3.25% in March 2025 to 2.92% in April 2025, with food inflation dropping from 2.82% to 1.85%. Urban areas saw a more modest decline in headline inflation, from 3.43% to 3.36%, but a significant reduction in food inflation from 2.48% to 1.64%. These trends reflect improved supply dynamics and lower commodity prices.
Sector-Specific Inflation
Housing, Education, and Health
Housing inflation in the urban sector slightly decreased from 3.03% in March 2025 to 3.00% in April 2025. Education inflation rose marginally from 3.98% to 4.13%, reflecting combined rural and urban trends. Health inflation remained stable at 4.25%, compared to 4.26% in March 2025. These sectors indicate steady cost pressures despite the overall decline in inflation.
Transport and Fuel Inflation
Increases in Key Areas
Transport and communication inflation increased from 3.36% in March 2025 to 3.73% in April 2025, driven by rising costs in mobility services. Fuel and light inflation saw a notable rise from 1.42% to 2.92%, reflecting higher energy prices impacting both rural and urban households.
State-Level Inflation Trends
Top States with High Inflation
Among major states, Kerala recorded the highest combined inflation rate at 5.94%, followed by Karnataka (4.26%), Jammu & Kashmir (4.25%), Punjab (4.09%), and Uttarakhand (3.81%). These variations highlight regional differences in price pressures, influenced by local economic conditions.
Data Collection and Future Outlook
Robust Methodology
The inflation data for April 2025 was collected from 1114 urban markets and 1181 villages across India, with a response rate of 100% for villages and 98.6% for urban markets. The next CPI release for May 2025 is scheduled for June 12, 2025. Continued monitoring of food and fuel prices will be crucial for sustaining low inflation levels.
Key Facts About April 2025 Inflation
- Announcement Date: May 12, 2025
- Headline CPI Inflation: 3.16%, lowest since July 2019
- Food Inflation: 1.78%, lowest since October 2021
- Rural Inflation: 2.92% (headline), 1.85% (food)
- Urban Inflation: 3.36% (headline), 1.64% (food)
- Housing Inflation: 3.00% (urban only)
- Education Inflation: 4.13% (combined)
- Health Inflation: 4.25% (combined)
- Top State: Kerala with 5.94% combined inflation